According to a recent report published by the New York Times, the social media giant, Facebook is all set to introduce its own crypto token, a Facebook cryptocurrency, by the first half of 2019.
Over the past year, there were numerous reports that hinted towards Facebook’s interest in the blockchain industry as well as launching its own Facebook cryptocurrency. However, it was only until the recently published report by the New York Times we came to find out that Facebook is in talks with several leading cryptocurrency exchanges to sell its crypto coin.
As we went on to read the report further that cited internal sources, we found out that Facebook is most likely to integrate cryptocurrency payments all across its messaging services in a view to offering benefit to its larger user-base of over 2.7 billion users. The messaging service offered by Facebook includes three apps wholly owned by Facebook itself and i.e. Messenger, Instagram, and WhatsApp.
Facebook Cryptocurrency Plans
Those who are wondering when Facebook decided to join the cryptocurrency bandwagon may not know that the social media mogul has been planning to launch Facebook cryptocurrency since last year. The first report of Facebook showing an inclination towards launching its own crypto coin emerged last year in December.
In that report, it will evident that Facebook cryptocurrency will only be available for WhatsApp users. This would not have been much favourable for Facebook since that would only target a smaller user-base. Facebook’s decision of launching the cryptocurrency across its suite of applications (WhatsApp, Messenger, and Instagram) would make better sense as this way it would be able to target a huge user-base.
In fact, the internal sources even claim that the new Facebook cryptocurrency will be fiat pegged stable coin. Moreover, instead of just one, its value shall be linked with three different fiat currencies. It is quite astonishing to know that several analysts in the past have shown keen interest on Facebook launching its own crypto coin in the market.
A Bloomberg report which was published earlier also suggested that Facebook is planning to target the ‘remittances market in India’ keeping in view the country’s humungous WhatsApp customer-base.
It is noteworthy that Facebook is not the only player that has been planning to introduce its own crypto coin across its messaging services. Apart from Facebook, Telegram, the Russian-developed messaging app, has also announced the launch of its crypto network (TON network) as well as a crypto token in the first half of 2019. Similarly, the two messaging apps, South Korea Kakao and Japan’s Line have plans to launch their own crypto coin for in-app payments and other services.
Facebook’s Current Blockchain Development
Since last year, Facebook has doubled-down on its efforts for the blockchain development. It was only recently when CEO Mark Zuckerberg spoke about the company’s agenda for the blockchain technology. Before that, the company has not been much vocal about its plans for the blockchain development.
In the start of March 2019, Facebook acquired Chainspace, a blockchain startup, in a talent acquisition deal. Chainspace is basically known as a planetary scale smart contracts platform, set to deliver on modern expectations of processing power, making it the platform of choice for complex real-world applications.
In a recent interview, Mark Zuckerberg said that he is potentially interested in putting the Facebook login on the blockchain. The company is in the process of betting on the blockchain at the moment. Apart from login, the social media giant has also announced plans to bring other data security aspects on the blockchain network.
It seems like 2019 is going to be exciting for the cryptocurrency market as big corporations like Facebook are all set to launch their own cryptocurrency projects. However, one concern remains is how far these corporations will decentralize their cryptocurrencies.
It has been hoped that the global cryptocurrency market shall also recover after the previous year’s gigantic collapse.